PitchBook News - VC in China begins bouncing back

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The Daily Pitch: VC

April 3, 2020

Like our newsletter? The data comes from the PitchBook Platform — our data software for VC, PE and M&A

Today's Top Stories

Impact on investors from travel curbs

Thank you to the almost 400 VC, PE and LP readers who responded to our investor survey this week.

Some of the results reflect a surprising degree of positive sentiment despite unprecedented turmoil in the economy.

Readers weighed in on the headwinds the industry is facing as a result of restrictions on travel and other movement outside the home. A majority of respondents said they find the measures a genuine impediment to fundraising activity.

After 2019 set an annual record for fundraising, PitchBook analysts expected 2020 to remain strong but not to surpass last year's totals, given industry cycles. But forecasts might need to drop even further if travel restrictions stretch beyond April. PitchBook analysts have underscored this challenge—especially for first-time managers—as LPs seem likely to be more comfortable working remotely with GPs through existing relationships.

Next week, we'll share more analysis of investors' outlook.

More coronavirus news: Continuing coverage from PitchBook

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The pandemic is transforming private market strategies for LPs

A police offer stands outside Mount Sinai Hospital in New York. (Spencer Platt/Getty Images News)

The COVID-19 pandemic's ripple effects across private financial markets continue to widen. The latest research note from our analysts is dedicated to exploring how allocators to private fund strategies are adapting to the crisis. A few key findings:

As a group, LPs are better positioned to combat the denominator effect today than during the global financial crisis
LPs allocating to PE and VC funds can expect net cash flows to turn negative
Many VC funds are likely to shift some of their expenditures toward sustaining portfolio companies

read it now

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A message from NSF

Invention to impact

Moxi, the nurse assistant robot created by Diligent Robotics, takes on mundane hospital chores and could help reduce healthcare professionals' exposure to disease. The Texas-based company recently raised $10 million to make more robots.

Diligent Robotics is one of hundreds of deep technology startups funded each year by the National Science Foundation (NSF), a government agency that plays a central role in accelerating deep technologies out of the laboratory and into the marketplace.

Each startup can receive up to $1.75 million to support research and development aligned with commercialization goals. The NSF team is a group of experts drawn from the technology startup and investment community, committed to identifying and supporting these new firms from launch to commercialization.

NSF helps these teams navigate the earliest stages of technology translation and on to marketplace success, investing roughly $200 million annually in small businesses like Diligent Robotics. In the last five years, these companies have gone on to raise more than $7 billion in follow-on capital and nearly 100 exits.

Learn more about NSF funding for deep technology startups today on seedfund.nsf.gov.

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China's VC industry bounces back after coronavirus-induced winter

Wuhan, China on April 2, 2020 (Getty Images News)

Dealmaking in China is springing back to life after a dramatic decline in venture capital activity for January and February.

The resilience is an encouraging sign for VCs and startups in the US and Europe who are starting to feel the impact of government-mandated containment measures and turmoil in the markets.

But it's possible that China's uptick may not last for long, and there's always a danger that COVID-19 cases will climb again, spurring more lockdowns:

Recommended Reads

What it's like to work for Instacart during a pandemic. [Rolling Stone]

An open letter to Jeff Bezos from an Amazon worker who was fired for violating a company-imposed quarantine after helping lead a protest at one of the company's warehouses. [The Guardian]

Sports fees are one of the priciest line items on many a cable bill. Now, with games on an indefinite hiatus, some customers are looking for a refund. [The New York Times]

A brief history of the CIA's infatuation with modern art. [JSTOR Daily]

Since yesterday, the PitchBook Platform added:

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Today's Headlines


	The Daily Benchmark
	2010 Vintage US PE Funds
	VC Deals
	Collibra hits $2.3B valuation
	French biotech startup reels in $54M
	Phantom AI drives off with $22M Series A
	Telehealth startup tallies $6M

The Daily Benchmark

2010 Vintage US PE Funds

Median IRR

11.99%

Top Quartile IRR Hurdle Rate

19.22%

1.59x

Median TVPI

Select top performers

Ticonderoga KI

Lone Star Fund VII

CIVC Partners Fund IV

*IRR: net of fees

36 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Collibra hits $2.3B valuation

Data intelligence company Collibra has raised $112.5 million in a round co-led by Iconiq Capital and Index Ventures, bringing its valuation to $2.3 billion. Founded in 2008 and based out of Brussels, the company has raised $345.5 million in VC financing to date.

Additional Investors:

CapitalG, Battery Ventures, Durable Capital Partners, Dawn Capital

View round

View 131 competitors »

French biotech startup reels in $54M

Dynacure has raised €50 million (about $54 million) in a Series C led by Perceptive Advisors, with participation from Bpifrance and Tekla Capital Management. The French biotech company will use the funds to pursue a clinical trial for the treatment of myotubular and centronuclear myopathies and other rare genetic muscle disorders.

Additional Investors:

Andera Partners, Kurma Partners, Pontifax Venture Capital

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View similar company »

Phantom AI drives off with $22M Series A

Phantom AI has raised $22 million in a round led by Celeres Investments, with participation from Ford, KT, Millennium Technology Value Partners and DSC Investment. The California-based company offers technology to help reduce vehicle accidents.

View round

View similar company »

Telehealth startup tallies $6M

SteadyMD has raised $6 million in a Series A co-led by Pelion Venture Partners and Next Ventures. The St. Louis-based startup is a creator of software that pairs users with doctors available for appointments over text, phone or video chat. It was valued at $18.6 million with a funding round in August, according to PitchBook data.

Additional Investors:

Crosscut Ventures, First Trust Capital Partners, Hyde Park Venture Partners, M25, Wild Ventures

View round

View 20 competitors »

Chart of the Day

"Another way GPs have approached the technology sector is through add-on deals. In 2019, the sector reached a new high of 20.6% of all add-on deal value, second only to B2B at 32.2% (down from 36.9% in 2018)."

Source: PitchBook's 2019 Annual US PE Middle Market Report